Regional airline, LIAT has just ten days worth of cash to keeps flying and will need a cash injection of US$5-million to say afloat.
This is according to Prime Minister of Trinidad and Tobago, Dr Keith Rowley after returning from the 30th CARICOM meeting, which just ended in St Kitts and Nevis.
“Currently, part of LIALT’s problems is that LIAT is flying uneconomic routes with loads that are heavily subsidised,” he told the media upon landing the Pairco International Airport. “If the airline is to remain flying to countries that have routes like that, the shareholders are saying that such countries will have to guarantee a minimum revenue stream to the airline or the airline would cease to fly those routes.”
Dr. Rowley pointed out that presently aircraft maintenance is the airline’s source of economic drain and he said he has agreed for LIAT to talk to Caribbean Airlines to see whether there is a benefit for cooperation between the two.
Rowley also said CARICOM member states discussed security at the St. Kitts meeting as it relates to inter-island travel, which included adding a US$2-3 surcharge on travel tickets between the CARICOM islands.
“Throughout the region, all our countries are facing significant upsurge in crime,” he said.
Dominica is a major shareholder of LIAT, along with Antigua and Barbuda, Barbados, and St. Vincent and the Grenadines. Officials here have consistently said it plays a major role in airlift to the country.
In 2012, Dominica injected $8-million into the cash-strapped airline.
Back then the government said it would secure the island’s investments in the tourism industry.
Liat seems to be like the port, where an overpriced service takes away from the number of people using the service.
While I hate taxes of every kind, it’s not different where I live. There are taxes and airport fees on every ticket purchased the difference between developed countries and small island nations like the Eastern Caribbean in particular Dominica, is the economy. Economic stagnation and deflation makes it cost prohibitive for the average Dominican to travel overseas. The loss of Ross University was another impact blow to air travel within the Eastern Caribbean. The problem and dynamics at play here are not as simple as everyone believes.
Personally, i think that LIAT may be mismanaged and needs an assessments of its overheads. LIAT always booked …I agree the Dominica leg is almost like an adopted child, but still LIAT needs proper management. I hope My PM DR DR do give them money, is best he buy a plane DOMAIR.
I can fly from Paris to Gouadeloupe with a ultra modern nearly new Airbus for €450 return (8 hour flight). If I want to fly from DA to Barbados with Liat (1 hour flight in an uncomfortable noisy aircraft) it cost me just over US$300 return. Does that make sense? Is that French airline performing miracles or is it that Liat perhaps got its business model completely wrong? I leave it for all you to decide… Not only Liat is about to disappear but the entire region will disappear as a holiday destination sooner rather than later. Greed is the regions downfall. A mediocre offer at utterly inflated prices!!! Tourists have plenty of alternatives nowadays.
Most of the comments I have read seem reasonable, but they miss the mark. The details are in the numbers. In plain and simple words here’s the main problem “the capacity required to keep LIAT running does not exist”.Look at what happen to Norwegian; they will no longer provide service to the French islands b/c it is no longer economically viable route for that airline. No capacity no return on investment.
How many people fly in and out of Dominica “everyday”? That number is nowhere upwards of 1000 people. The routes LIAT service do not create any economic value for the company because most Caribbean residents do not have the residual income to hopscotch (or island hop) all over the Caribbean. Our people in the region are more concerned about taking a direct flight to the Americas, Canada, Europe and Asia.
We need more movement between the islands (every day) to maintain a return on investment. Is LIAT moving 15K to 20K passengers every day?Sadly enough, LIAT “may” fail and disapp
You echo my sentiments. Most airlines need an 80% flight capacity to turn a profit. Lack of free movement within the region will be our downfall. We remain suspicious of each other and this is our number one stumbling block. I shudder to think what it will cost to fly to Barbados if LIAT ceases operations. Dominica will continue to suffer, because our alternatives are few.
So how are the clients going to arrive for all those new hotels and resorts supposed to open this year then? Or are they just money laundering places with few customers but showing big cash flow? I mean, it doesn’t make sense does it.
The problem with Liat is very poor management, after being there for more than 50yrs they can’t get it right,they will never get it. What’s the point of going to Antigua to get to St Lucia from Dominica, waste of fuel. Every new CEO comes with a wealth of knowledge but it doesn’t seem to be filtering down to the bottom. All the taxes are not government, when government tells Liat they can’t increase fares they put in a disguised tax themselves.
Probably to pick up people that going to st Lucia from Antigua? Or drop off people in Antigua from Dominica?
The problem with Liat , is the number of people from some countries, Example Dominica, Dominica probably has, 8? people leaving the country. I dont think a ticket cost * 8 is enough money to even pay for the gas to start a plane
What the islands need to do is remove the taxes on the tickets so that more people will travel whereby increasing the revenue stream.
Liat should have merged long ago. Actually all the Caribbean airlines should merge and form one single airline serving the entire region
What, and no competition? That would be a receipt for disaster. No, not a good idea at all. List already shielded by its shareholder governments and look what happen.
Hello and good afternoon my people. Now we can let Liat collapse then we can lease eight of their new ATR planes to form our national airlines. Then our Government can say if you intend to visit Dominica you must come to Antigua, St Thomas or Barbados then you can take Air Dominica to the Nature Isles problem solve.
Tony, those ATRs are expensive to maintain. A jet engine if more efficient than a turbo prop engine. Additionally, we do not have the capacity to fill a 50-seat ATR daily. The loss of Ross University was another major blow to LIAT as well. You no longer have a steady stream of medical students traveling to and from Dominica. In Barbados, those students do not have to mess with LIAT and their foolishness. Direct flights to and from Barbados all day long at affordable prices. We lack movement within the region.
Hello and good afternoon my people. Well Prime Minister Rowley why don’t you just allow Caribbean Airlines to take over Liat because your national airlines is successful . In that way Caribbean Airlines has flights originating in America, Canada, The United Kingdom so Liat current route would continue to be serve and we wouldn’t need and foreign airlines to serve us and we would keep our money within the Caribbean. I have flown Caribbean Airlines about five times to Trinidad and if they merge with Liat we can used Antigua as a hub which would solve the problem .
West Indian people aka Crabs in a barrel refuse to see the benefits of unity.
The fatal tendency of West Indians to quarrel with each other fueled with Britain’s sowing seeds of disunity like a ventriloquist so as to place all responsibility of failure on its puppets saw dissolution of the Federation at midnight on 31 May 1962. We remain set apart from each other, not by sea, but by our own selfish decisions.
Caribbean Airlines, the national airline of Trinidad and Tobago, was offered the option to be another shareholder in LIAT, but the government of then Prime Minister Patrick Manning rejected the offer.
Someday I hope the “bigger” ones will value the idea of assisting the “smaller” ones like a “paying it forward” gesture instead of viewing us as piglets suckling on a mother pig. Who knows, one plus nought could be 10 as we all have something to offer and “in the modern world, no country could be an island entire of itself.”
So it is all Gt. Britain’s fault is it? Typical, as if we did not make up our own mind to be independent. Honestly I often wonder if we really know what we want, like a child wanting to party, go out when they want, live free at home and then want their parent pick up the bill. Time to grow up people.
The plane in the caption is an old De Haviland Dash-8, over 30 years old and no longer in active service. This kind of publicity does not help LIAT.
Here we go again…..
Are we missing the point that LIAT is also loosing money on some routes. Is Dominica one of those routes? I would bet my last dollar it is
Somebody somewhere milking LIAT, is …. they doing, some living to big on LIAT. they need to find innovative ways of making money. if only they had mention how much they have i would try to see what i can put but all they saying they need 5m. Strupes
Liat has a simple issue to resolve. An issue that requires the Board of Directors and Management to simply think outside the BOX.
It is evident from the facts, thus far, and “God knows how many year now” that they have failed. They have not thought outside the box!! Instead they keep applying the same approach and expect different outcomes..Madness!!!
The question that has to be answered is ,”What business model can they adopt that would generate CONSISTANT Cash Flows ( more during the pick seasons) and sufficient to cover its operational expenses….The focus has to be on income generation…
An advalorem model of income generation has to be developed…In this regard, the question that they must answer is, “What can LIAT do to excite and stimulate caribbean nationals to travel in droves throught out the region and through out the year.”
Think out side the boxes..
A clue…..The cost of travel for a caricom national is prohibitive..Board and Management, you…
ok when u have to fly to Antigua from st lucia then back to dca of course its gonna be useless how about flying to dca first drop people of then continue to Antigua . thats simple logic even i can think of that
For so much money I am paying for my fare and the airline not even giving me a cookie, a cracker or a cup of coffee. Let them go bust I say so I don’t have to worry abou late flights and overnighting in Antigua again. Liat think we owe them a living, well tough cheese.
Instead of bailing out LIAT they should remove fees and that departure taxes. Half the ticket cost is tax, why does anyone think this is good business?! 100%+ taxes on a business and you expect business to be booming. Smfh.
You are absolutely correct, Ti Garcon, with those comments. The airfares are prohibitively high and about half is government taxes and fees. Those in executive and managerial positions of LIAT receive monumental salaries and excessive perks that the beleaguered airline can ill-afford to give. There needs to be a serious readjustment o expenditure and lowering of taxes and fees by the regional governments if LIAT’s financial prospects are to be viable.
Maduro soon gone, Liat soon gone, Skerrit soon !!
Skerrit is the most gormless of Caribbean leaders ..Call upon him to invest US$16 000 000.00 this time.
He will do it. He is silly, and amount bright people he is out of his depths!!!
Mr. Percent u love the pm name. U can’t talk and don’t mention the pm name. Go find something constructive to do.
You my friend, you are clearly one of those regular red clinic suckers. That’s why you love YOUR PM.
among smart people, he is out of his depths.
all the so called economics folks seem not to understand that all the government taxes, and security taxes are some of the reasons why travelling throughout the Caribbean will never take off and airlines will continue to struggle.
just imagine while speaking about this , they are also thinking of putting another tax.
free up liat so that Caribbean people can become Caribbean tourists and your economies will benefit.
“…..adding a US$2-3 surcharge on travel tickets between the CARICOM islands.”
And herein lies the problem with politicians and bureaucrats who do not have the most basic knowledge of running a business, let alone an airline which is one of the most challenging businesses to run.
Why would they even contemplate increasing prices when you have 5 days of cash to keep afloat. Most regular businesses would throw a big sale to attract new customers or entice people to use their service. But NO, with government people running things at LIAT, business is down, raise your prices even higher.
With that kind of mentality LIAT cannot be saved.
Zandoli the $2-$3 dollar hike suggested is not for LIAT’s bucket but for security .
Mamizoo, you are helping make my point. LIAT as an airline has only limited control over the total cost of a ticket. It is the politicians and bureaucrats who are inflating the cost that make air travel unaffordable in the region. So while they are lamenting the fact that LIAT is almost insolvent, they are exacerbating the problem further by even talking about further increase in the cost of a ticket. This is not LIAT’s doing. It has everything to do with people making business decisions who could not run a lemonade stand.
Who’s security? Government or Liat’s? To levy the same surcharge for all the destinations in different jurisdictions would not be logical.
Mamizoo, perhaps, but it doesn’t matter where the money supposedly ends up, it matters that it makes it more expensive to fly. It’s basic economics: when you raise the price of something, people tend to buy less of it.
Good point Steve, but not always. The European Union recently implemented a 25% surcharge on travel away from the Union and this has not deterred travelers from taking a holiday. Dominica is particular has an economy that’s non-existent with little Foreign Direct Investment and high unemployment. When you add these two variables together, it makes it almost impossible for the average Dominican to travel overseas.
Well, I can’t find a single reference online to the surcharge you mention, but assuming that happened recently as you say then the long term effects wouldn’t be seen yet anyway. Rest assured that such a significant hike would change the way people plan their holidays. There’s a little elasticity here, but not that much.
Over the years LIAT has become more and more sick. Many doctors have treated her including our own Dr.Dr. Skerrit with our $8Million four passport money. Now the cancer has returned in a raging form. Death is inevitable so please allow LIAT to go in peace. Allow regional entrepreneurs to start a new airline. Enough is enough, let LIAT RIP Souplay!
So much for the 8 million dollars Skerrit gave them the last time they were about to cease service. Let them fail and get a new Airline for the Caribbean because they have been a total failure since their existence.
Who is the prime minister of Trinidad and Tobago?
The leaders of caricom are incompetent,i would love to see Liat null and void,Skerrit said he has 50 million for the airport,so just buy Liat SKERRIT,BUNCH OF WASTE YOU ALL ARE.
Well if Leave Island Any Time(LIAT) is in such bad shape, why pull out of places like the Virgin Islands where hundreds of people especially older folks who enjoyed traveling to their country at least once a year now is left without an option.
Return flights to the places that was looking promising and and more flights during these countries festival time and you will see the millions that you are looking for. I guess that major law suit they was hit with has really drown their business. Treat people right and your customers will return that favor.
Well the richest nation on earth which is Roosevelt Dominica, and the only one depending totally on LIAT, it is the double doctor Punjab/Duquesne responsibility to keep LIAT in the sky!
Every other island in the Caribbean region except the British colony of Montserrat have International Airport. Skerrit said Dominica doh need no stinking International Airport because Antigua, and Barbados have one already eh!
Hahahahahahahahahahahahahahahahahahahahah!
I want LIAT sink!
good let them go dont keep bailing them out they are horrid to those who use them.Get someone else.
I have to agree. The problem is who else is there?
i think that is a scam to fleece de empty pockets of Dominican’s following one of de regions most destructive hurricanes.
As a Dominican citizen with Dominica as a “major shareholder” ……..it would be interesting to know de details of Liat’s accounts
what a shame boy….CARICOM have heart to talk that talk and still mention foolishness about ease of travel of CARICOM residents throughout CARICOM.
All you jacket and tie sell out doh tired climb on poor people to put your head above de sun to shine?
i want to see how much millions my PM will put in it rapidly.
I will compare de rapid responce to that of a HOSPITAL near our major airport!!!!
I will compare that rapid response to that of meaningful electoral reform to have a cleansing of our voters list and introduction of voters ID card!!!!!
i watching closely……..de next move by our PM should prove to us Dominicans whether de incumbent government in power has any regard for free and fair elections.
clock…
This sounds like a real Alarm for the region as a whole. We must not look at this myopically but instead we must look for linkages between the “cause and effect” of why LIAT has struggled but kept flying for so long.
Though Liat is heavily subsidized, the truth is the tickets are still very expensive but bottom Line is we need regional travel connections.
So, how can we keep Liat flying while reducing subsidies and at the same time minimizing ticket prices? Well internally Liat needs to restrategise, maybe cut non-profitable routes, or pool for direct flights to slow routes 3 times a week or so, they decide..idk.
Also, Caribbean ppl need to make more money, our pays are too small, not enough regular disposable income. More disposable income would increase flight demands. The islands are so close but the price is prohibitive for inter-island leisure travel.
In 2012, Dominica injected $8-million into the cash-strapped airline.
Back then the government said it would secure the island’s investments in the tourism industry.
Now tourism has continually dropped in Dominica every year since 2012, how has that $8 million dollar injection paid off for the country. We all better hope LIAT does not go out of business, cause if it do, where will this country be as far as a reachable destination for all, not just tourism.
This is one of the big SCAMs the leaders of the islands continue to run on their people. If LIAT so bad off, publish the money paid to its shareholders the past 5 years, and see who really losing money. They inject the people money, but the profits go to the shareholders and the shareholders only.
Letting LIAT die would cause major disruption but it would be good for the Caribbean because LIAT HAS been consuming tax dollars while giving deplorable l service for 60 years. Something better will rise from the ashes of LIAT.
I want to see when Skeerit voluntarily leaves office who all you will take about? God help them.
“Voluntarily leaves office”?
Yeah right!! When cock grow teeth!!
Does mr. Skerrit even use this airline in his international travels? If not, he will not miss it much. In any case, if I were the Barbados government I would only consider helping out LIAT financially on the proviso that they get rid of their CEO and transfer their hub to Barbados.
He doesn’t use LIat. He hires private planes and jets. Where do you think the money goes?
The last time I’ve flown with LIAT the fees and taxes were higher than the actual costs of the tickets. You have to question why local governments try to squeeze every single cent from their people flying locally.
LIAT can only charge only prices that Caribbean people can afford. So if a local can only afford a total 400 Dollars for a round trip to another island and 220 Dollars of that are taxes and fees there’s only 180 Dollars left for what LIAT can charge for the actual ticket.
With these prohibitively high taxes and fees no airline can probably be run making profits.
There is only one real solution: Abolish all fees and taxes for flights within the Caribbean. So LIAT can charge higher prices for the tickets and yet the actual traveller pays less and can travel more often than today.
you are so right!!!!!
This need to CHANGE as the ONLY thing that brings progress is CHANGE.
Let LIAT Fail!!!!!!
Hope our GOVT will not provide another injection of $7M dollars which we got nothing back for it in terms of better access to Dominica.
Let the market force determine a solvent ….YES, it will hurt in the short term but in the long term we will have better access.
They should call Richard Branson Virgin Atlantic to buy out L I A T. He will get the company straightened out, fire everyone and use small jets instead of props with direct routs from Florida. They should also call Billionaire Marcus Lemonis CEO of Camping World so he can run the company.
Bronson would have to be fool to invest in a thing which is not profitable. People do not operate business loosing money monthly. Between 1958, and early 1960, LIAT was profitable serving St. Kitts, Grenada, St. Lucia, St. Vincent and Montserrat, none of which had International Airports.
The Airline commenced spiraling down in the early 1960’s after the late Paul Southwell, born in Castle Bruce Dominica became Premiere of St. Kitts for a brief period during the West Indies Federation introduced St. Kitts International Airport; shortly after that the West Indies Federation was killed my the late Erick Williams Prime Minister of Trinidad, where Trinidad was the Capital of the West Indies.
The fact is all of the islands which were depending on LIAT for transportation now boast International Airports except Roosevelt Dominica. The only place in the English speaking Caribbean islands where people cannot fly in and out on an International flight is Dominica. Nobody wish connecting…
So, only if Bronson was an idiot he would by LIAT, sitting on some island waiting to fly passengers from Europe, or North America to connect to you all Dominica, when if there was an International Airport in Dominica Virgin Atlantic could fly direct from the United States, Canada, anywhere in Europe to Dominica.
That would be much more economical the scenario I explained!
“So, only if Bronson was an idiot he would by”
That should read “Buy.”
While I am at this let me elaborate a bit: In the 1970’s during the George Walters Administration in Antigua, LIAT decided to get involved into International Flights; hence, they purchased or rented two 747, for that purpose.
Gerald ” Jerry” Watts, former minister of Tourism in Antigua believed to be born in Portsmouth Dominica, but certainly to a Dominica born mother, advised the then Government of Dominica, the Labor Party to develop, to accommodate International flight into and out of Dominica via LIAT.
The clowns in Dominica insisted “Dominica doh want no International Airport, because Antigua have one already. So, LIAT flew between Guyana, Barbados and Jamaica, and Miami. After a few months, they abandoned the 747’s.
Our people are simply stupid, curse on all of us, one stupid person in the Labor Party said “we doh want no international airport because Antigua has one already” and that…
Dominica loses out because people do not want to have to go through a bunch of conniptions just to get to the island, example having to over night in Antigua or other islands. This has been going on for years, when tourists see how much conniptions they have to go through to visit Dominica they by-pass Dominica for other islands. Even people born on Dominica do not want to go back to visit because of the conniptions and stress just to get there. Why travel to Dominica when it takes two days to fly there or longer.
Thats amazing when a 79 dollars ticket become $250. where in the world do you see fees and taxes more rhan the cost of a ticket. Caribbean needs increases in wages and inter island commerce (tourism, sports, entertainment etc) 40 milllion people in a region is more than enough to sustain such a small airline. Our governments need an overhaul in the region. We are stuck in a mental era not far removed from slavery and oppression. Liat is a government runned and financed airline. What do you guys expect. Waste and poor management with a region that encourages poverty, begging, and mediocrity. What do we expect. People cannot afford to travel. Low volume means not profitable.
Time for them to go out of service I hope skerrit will not bail them out
I think it’s a Skerrit conspiracy to keep all those carnival diaspora at home until He call elections.
hahahahahaha..very clever!!
LIAT is always broke: are they running a business/non-profit airline or a charity? It is time to put this airline to pasture and let market forces dictate which regional carrier survives and/or succeeds. Lets do away wit the nostalgia of LIAT because it is a new day.
L I A T was once a good airline back in the 196o’s and 1970’s. They were dependable. Dominica needs their own airline.
I agree. This seem the only reasonable comment so far. LIAT is in existence for over 50 years and always have to be subsidized to encourage lower ticket price. LIAT is sinking and prices are rising. No goal is met. So let it sink and find alternatives. Hook up with air France and do shuttle over until we have our own airline and our airport . When we get our airport we can beg or borrow three 747 to start our airline. We can have technical assistance from China to train all staff in the industry, and help us negotiate landing rights.
They are also woefully over staffed. See Aurigny air, based in the U.K. Channel Islands for comparison. We should seek closer cooperation with the French Caribbean instead of Carricom for transport. That would also take care of security.